Now, looking forward, Fitzpatrick sees more positive signs.
First, the stock has been printing higher highs and higher lows, a constructive pattern. Also, the stock has made a bullish crossover – the 50-day moving average crossed above the 200-day.
Because the stock has likely bottomed and is now making bullish chart patterns Fitzpatrick is a buyer.
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Looking at key levels, if the stock breaks out above its February 2012 high of $10.63, then Fitzpatrick believes it could be smooth sailing to $14, as that's the next ceiling of resistance, coinciding with the late 2010 high.
However, since it's almost impossible to pick a bottom, Fitzpatrick doesn't think you should wait to buy. He thinks at current levels it's ok to start at least a small position.
What's the bottom line?
Technical analysis seems to confirm Jim Cramer's bullish outlook on Diana Shipping. Both fundamentals and chart patterns seem to suggest the $9 stock may be headed to $14.